Bitcoin News Today: Bitcoin's $114K Pivotal Test: Will It Breakout or Backtrack?

Bitcoin faces a critical juncture as traders and analysts closely monitor key price levels ahead of a potential all-time high in the fourth quarter of 2025. Following a week of volatility, Bitcoin (BTC-USD) has settled around $115,400, consolidating gains after reaching $124,500 earlier in the week. The recent price action has been influenced by Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, which hinted at the possibility of a September rate cut. This has rekindled interest in risk assets, including Bitcoin, though the pace of Bitcoin’s response has lagged behind altcoins like Ethereum and Solana, which have surged more aggressively in the same period [3].

Technical analysis suggests that Bitcoin remains locked in a critical price range. Resistance is currently forming around $117,500–$118,000, a level that has stalled Bitcoin’s advance for three consecutive sessions. Coinglass data reveals that over $3 billion in short positions are concentrated near $117,800, indicating that traders are actively defending this level. Breaking through this resistance would likely trigger a short squeeze and potentially push Bitcoin toward $123,000. Immediate support is at $113,500, with the $111,600–$112,000 zone expected to act as a potential floor for the price. Analysts warn that failure to defend $113,500 could open the door to a correction as low as $105,500 [3].

In the short term, Bitcoin is under pressure from a range of market signals. Derivative metrics show a bullish tilt, with positive funding rates and open interest remaining above $12 billion. However, leverage is concentrated near resistance levels, suggesting that Bitcoin's momentum may be fragile. On-chain data reveals that more than 70% of circulating Bitcoin has remained unmoved for over a year, reinforcing the asset’s long-term scarcity narrative. Nonetheless, recent outflows from Bitcoin ETFs and a lack of whale accumulation have weighed on investor sentiment, with Bitcoin ETFs recording $1.2 billion in outflows over the past six days [3].

Looking ahead, market participants are closely watching the $114,000 level as a short-term pivot. Analysts like ZYN and Rekt Capital have identified this level as a critical decision point, with a firm rejection likely leading to a deeper correction. Conversely, a sustained break above $114,000 could see Bitcoin retest $117,500 and beyond. ZYN also pointed to the $106,000–$110,000 range as a potential reset zone for the Bitcoin market, a level that has historically coincided with trendline bounces since 2023. According to ZYN, this could set the stage for a new all-time high in Q4 2025 [1].

The broader market environment remains mixed, with Bitcoin’s market dominance dropping to 56.4% as capital continues to shift toward altcoins. Ethereum, XRP, and Solana have outperformed Bitcoin in recent days, indicating a broader rotation into risk assets. This trend has also extended to meme coins, with Dogecoin and MemeCore seeing significant intraday gains. For Bitcoin, the immediate focus remains on its ability to hold key levels and attract institutional flows. With whale positions remaining strong and ETF outflows persisting, the path to a $110K breakout—and beyond—will depend on the Fed's next move and the resilience of on-chain fundamentals [1].

Source: [1] Bitcoin Faces Crucial $106K Test Before Potential Q4 ATH Push (https://cryptopotato.com/bitcoin-faces-crucial-106k-test-before-potential-q4-ath-push/) [2] BTC below $113K ahead of Powell’s Jackson hole speech, MemeCore rallies 20% (https://www.bitcoininsider.org/article/283697/btc-below-113k-ahead-powells-jackson-hole-speech-memecore-rallies-20) [3] Bitcoin Price Forecast: BTC Holds $115K, Eyes Break Above (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-consolidates-at-115k-usd)